The court ruled that the financial authorities' severe punishment against Jeong Yeong-chae, former CEO of NH Investment & Securities, regarding the 'Optimus fund fraud' incident should be canceled. NH Investment & Securities received four sanctions from the financial authorities, including a warning against Jeong. They filed an administrative lawsuit against two of the sanctions, winning the case in the first instance.
Following this ruling, attention is focused on NH Investment & Securities' claim for reimbursement against Hana Bank and the Korea Securities Depository. NH Investment & Securities, the largest seller of the Optimus fund, refunded all principal amounts to individual investors but has filed civil lawsuits claiming that Hana Bank, as the custodian, and the Korea Securities Depository, as the administrative manager, should also share liability. The industry believes that the ruling regarding Jeong will likely position NH Investment & Securities advantageously in the reimbursement claim lawsuit as well.
The Seoul Administrative Court's 14th Division (Director General Song Gak-yeob) ruled in favor of the plaintiff on the 6th in Jeong's lawsuit against the Financial Services Commission regarding the cancellation of the warning sanction.
In November 2023, the Financial Services Commission confirmed a sanction from the Financial Supervisory Service, which decided on a 'warning' against Jeong for violation of the obligation to establish internal control standards in relation to the sale of the Optimus fund. The warning is a severe punishment that restricts reappointment and employment in the financial sector for 3 to 5 years.
Previously, the court judged that the Financial Services Commission should also cancel the sanction that ordered a 3-month suspension of some business operations and personnel measures against the responsible executives, citing violations of the prohibition against undue solicitation. The Financial Services Commission is currently appealing.
Separately, NH Investment & Securities is continuing legal disputes against Hana Bank and the Korea Securities Depository. This pertains to the decision by the Financial Supervisory Service's Financial Dispute Mediation Committee that Hana Bank and the Korea Securities Depository should bear joint responsibility for returning the invested funds. NH Investment & Securities believes that Hana Bank's responsibility is significant due to overlooking its monitoring obligations in the process of holding, managing, acquiring, and disposing of the investments raised by Optimus Asset Management.
Last year, the Seoul Central District Court ruled that GC Wellbeing, which invested in the Optimus fund, along with NH Investment & Securities, Hana Bank, and the Korea Securities Depository, must jointly bear responsibility and compensate in an unjust enrichment claim lawsuit.
The Optimus fund, which was sold for 432.7 billion won, suspended redemptions in June 2020. Following this, the Financial Dispute Mediation Committee decided on returning the investment funds, and NH Investment & Securities paid 278 billion won to individuals to protect investors.
Optimus Asset Management raised investment funds from securities firms by falsely presenting their fund as one that invests 95% in public institution sales bonds, considered safe assets. However, the funds raised were actually used for real estate development projects, lending, and the acquisition of non-performing loans, resulting in massive losses.